U.S. SECURITIES AND EXCHANGE COMMISSION

Litigation Release No. 21777 / December 13, 2010

United States v. William A. Huber, Case No. 10-cr-10088 (C.D. Ill.).

SEC v. William A. Huber and Hubadex, Inc., 09-cv-6068 (N.D. Ill.).

WILLIAM A. HUBER SENTENCED TO 20 YEARS IN PRISON AND ORDERED TO PAY $23.6 MILLION IN RESTITUTION FOR SECURITIES FRAUD

The Securities and Exchange Commission announced that on December 10, 2010, U.S. District Court Judge Joe Billy McDade sentenced former Forsyth, Illinois money manager, William A. Huber, to serve 20 years in federal prison for operating a Ponzi-type scheme for more than a decade. In addition, Judge McDade ordered Huber to pay more than $23.6 million in restitution to the victims of his fraud. Huber was immediately taken into custody at the conclusion of the sentencing hearing.

On August 10, 2010, the U.S. Attorney's Office for the Central District of Illinois filed a criminal Information against Huber charging him for defrauding investors in a Ponzi-type scheme and grossly inflating the amount of money he managed and the amounts of investors' returns. That day, Huber pled guilty to one count of mail fraud, one count of money laundering and one count of engaging in prohibited monetary transactions.

The Commission previously filed its own civil injunctive action against Huber in the Northern District of Illinois based on similar conduct. The Commission's complaint alleged that Huber, operating through his investment firm Hubadex, Inc., made Ponzi-like payments to investors by using newer investor funds to make redemption payments at inflated amounts. The complaint also alleged that Huber significantly inflated the fees that he was entitled to receive based on the outsized investment returns that he reported to investors and lied to SEC staff members during their investigation of his activities, reporting false account balances and claiming he had made hedge fund investments that did not exist. On September 29, 2009, the Court entered an order pursuant to Huber's consent, permanently enjoining him from further violations of the antifraud provisions of the federal securities laws, freezing his assets and ordering him to pay disgorgement and civil penalties in amounts to be determined in a separate hearing. On October 13, 2009, the Honorable Ruben Castillo appointed Kevin B. Duff of Rachlis, Durham, Duff & Adler, LLC as the receiver over Huber and Hubadex, Inc.